On September 22, 2025, an appraisal award of $187 million was vacated by the U.S. District Court for the Northern District of Florida, because the appraiser selected by the homeowner’s association never actually stated an amount of loss.
In Westchester Surplus Lines Ins. Co. v. Portofino Master Homeowners Ass’n Inc., following damage caused by Hurricane Sally, the parties could not agree on an amount of loss, the claim moved to appraisal. The appraiser for the association submitted a Statement of Loss that totaled $233 million. The Statement of Loss, however, did not identify the actual cost to repair the damage, but was described as an “a la carte pricing” menu so the umpire would have a price list.
The appraisal provision required that, “the appraisers shall appraise the loss, stating separately the value at the time of loss and the amount of loss.” The Statement of Loss, which was merely an itemized price list, did not constitute “an amount of loss.” Since the association’s appraiser did not comply, with what the court described as “the most basic –and fundamental– aspect of” the appraisal process, the entire award was vacated and the parties were required to conduct a new appraisal.